On March 11, 2023, the decentralized finance project Makerdao issued an emergency proposal following the USDC depegging incident that saw the stablecoin dip down to $0.877 per unit. At the time of writing, Makerdao commands $3.1 billion in USDC collateral that backs a portion of the project’s stablecoin, DAI.
Makerdao Proposes Changes to Limit Exposure to Potentially Impaired Stablecoins
Members of Makerdao have been discussing a recent emergency proposal that aims to address the $3.1 billion in USDC assets the project holds as collateral. The news comes as Circle Financial revealed it had funds stuck at the financial institution Silicon Valley Bank (SVB) and the firm’s stablecoin, USDC, broke its $1 parity. Presently, USDC is changing hands for $0.91 per coin, but five other stablecoin assets have been affected.
Makerdao’s DAI stablecoin is down to $0.92 per coin, and the stablecoin slipped to a 24-hour low at $0.881 per DAI. DAI’s unstable activity has caused the Makerdao team to issue an emergency proposal to address the $3.1 billion in USDC it holds.